September 29, 2020
It's hard to imagine a world without a coffee shop on every corner. But before Starbucks Corporation (Tii:SBUX) changed the coffee landscape in the 80s and 90s, most people either made plain drip coffee at home or drank it in diners or the office. When Starbucks brought Americans high-end caffeinated drinks like cappuccinos and espressos and introduced a new sort of "third place," they changed the way that we related to this popular drink.
In honor of September 29 being National Coffee Day, let’s take a look at some of the players in this $100 billion global industry.
Restaurant Brands International Inc. (Tii:QSR)
Unless you live in a few select locations in the Northeast, you are probably only familiar with Tim Hortons through enthusiastic social media posts from your Canadian friends. While you may not be able to buy a cup of Timmies, you can still buy a piece of their success by investing in their parent brand, Restaurant Brands International. This company also owns another regional favorite with a rabid fanbase, Popeyes Chicken.
Dunkin' Brands Group, Inc. (Tii:DNKN)
This publicly-traded company, which owns both Dunkin' Donuts and Baskin-Robbins, uses an interesting business model. Unlike Starbucks, where about 60% of locations are corporate-owned, Dunkin uses a 100% franchise model. Franchisees pay the parent company licensing and royalty fees, and (sometimes) rent, to run their own Dunkin' Donuts locations. Because of this, while Dunkin' has lower revenue than Starbucks, they have lower costs as well.
Farmer Bros. Co. (Tii:FARM)
With only one café location in Portland, Oregon, you probably haven't heard of this coffee roaster even though they've been around since 1912. But you've probably had some of their brews in restaurants or hotels. Farmer Brothers supplies wholesale beans throughout the U.S., primarily to restaurants, hotels, casinos, offices, quick service restaurants, convenience stores, healthcare facilities and other foodservice providers.
Keurig Dr. Pepper Inc. (Tii:KDP)
If you are more of a fan of home-brewed coffee, Keurig Dr. Pepper may well be your brand. They own not only the eponymous coffee-making machines and pods but also popular gourmet coffee brand Green Mountain, which actually supplies more coffee in the U.S. than even Starbucks. The coffee has many adherents who say it is a superior-tasting brew to Starbucks' heavily roasted styles.
As one of the most popular beverages in the world that has evolved from being consumed at the start of the morning to enjoyed at any time day or night, there is no better way to celebrate National Coffee Day than pouring yourself a cup and savoring while learning more about the names behind your favorite brew.
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